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Short note on supply chain management
Aspects of supply chain management
Short note on supply chain management
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Supply Chain Management (SCM) is a management approach, aiming to make the whole supply chain system cost to a minimum so as to effectively manufacture, transport, distribution and sale under the certain customer service and demand conditions. In order to have a best understanding about Lean Supply Chain and lean production lines, we were asked to participate in a Lego supply chain simulation as following. The Scenario: We were seen as a company that aims to build and sell Lego house. The whole class was divided into eight groups, four groups were composed of a team to play suppliers, warehouses, distribution centers, and manufacturers, each group has their own standardised procedures. We were providing a variety of colors …show more content…
Round Three: Each group, one by one, to implement their process and build a house Debrief: Our group initially intended to build a house by each two person, one to complete steps 1 to 4, another people to make steps 5 to 8 at the same time, then integrate these two parts. However, during the implementation, this process has proved impractical. Because in a short time, the speed of two person are not the same, which leads to lots of semi-finished products were wasted. Revelation: Everyone should identify the objectives and complete them by themselves. While constantly receiving new demands, the partners should rapid exchange, cooperate and transform objectives in accordance with pre-conditions, thereby increasing the total output. In addition, quick response is still the core of the supply chain, preparing the elements in advance, then rapid extract and assemble. …show more content…
Therefore it requires from the aspect of user-centric and provides the best services. Rapid and Timely Timeliness is an extension of the service. It is the requirements of both users and social development, but also a key for the company in the face of new requirements to win. External factors: a quick overview of what the market will need and forecast changes in the environment , and quickly identify market opportunities. Internal factors : timely to innovate, develop new products to meet market demand. In addition, make the flow of goods faster and shorten the cycle of social reproduction. Savings Saving is an important rule in the economic field . In the supply chain , company should try to shorten the completion time and close to the real-time production needs. Besides, company should be focusing on labor savings, material savings, and reduce the cost of purchasing, inventory, transportation as well as other sectors. Relying on savings to reduce investment is an important means to improve the relative
Each week, each component in the supply chain tries to meet the demand of the downstream component. Any orders which cannot be met are recorded as backorders, and met as soon as possible. No orders will be ignored, and all orders must eventually be met. At each period, each component in the supply chain is charged a $1.00 shortage cost per backordered item. Also, at each period, each component owns the inventory at that facility. In addition, the wholesaler owns inventory in transit to the retailer, and the distributor owns inventory in transit to the wholesaler, and the factory owns both items being manufactured and items in transit to the distributor. Each location .is charged $.50 inventory holding cost per inventory item that it owns. Also, each supply chain member orders some amount from its upstream supplier. It takes one week for this order to arrive at the supplier. Once the order arrives, the supplier attempts to fill it with available inventory, and there is an additional two week transportation delay before the material being shipped by the supplier arrives at the customer who placed the order.
Generally, as figure 1 shown that the Strengths for this supply chain is good for short run production and hard make mistake. It could avoid the lack of materials and make materials mixed together.
The main aim of supply chain management is allow the movement of both goods & information in a manner which is appropriate to any industry.
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
If someone were to be asked what their profession is and they replied with supply chain management, they would likely be met with blank stares and the question, “what is that”? To briefly sum it up, supply chain management (SCM) is the overseeing of flow efficiency and storage of a product from the point of origin to the point of consumption. In the fairly recent past the implementation of supply chain managers has been increasingly more necessary for businesses to cut costs in manufacturing and distribution. Therefore, as technological advances continue to leap forward, SCM is able to be constantly modified to increase the growth of businesses and generate greater profit.
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Supply chain management is the main role in operation management.Supply chain management handles supply side activities of a business with efficiency and effectively to gain the competitive advantage in the market.(Investopedia, 2003)SCM concerned with raw material supply,intermediate supply,end product distribution,retailers and wholesalers.So every aspect of supply chain is critical for the business and doing it right can cause
“The concept of Supply Chain Management is based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain. The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.” Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. The result was disjointed and often ineffective supply chains.” (Handfield)
Lambert, D.M. (2008) Supply Chain Management: Processes, Partnerships, Performance, Sarasota. Florida: Supply Chain Management Institute
As per definition supply chain management is the management of different stages of all business activities and processes which is necessary to manage demand and supply on a global scale.
Supply chain management, then, is the vigorous administration of supply chain activities to exploit customer value and achieve a reasonable competitive improvement. Supply chain activities cover entirety from product development, sourcing, production, and logistics, as well as the statistics systems required to coordinate these events. It denotes a sensible effort by the supply chain firms to develop and run supply c...
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system [1]. The basic objective of supply chain is to “optimize performance of the chain to add as much value as possible for the least cost possible.
However, SCM also allows a firm to achieve other related objectives. First, it allows an organisation to reduce costs per unit due to the increased level of efficiency. Supply chain management also reduces the length of the delivery cycle (Havaldar, 2008). Other objectives of supply chain management focus on waste reduction and creating delivery systems that are superior to those of competitors (Havaldar, 2008). From the definition, it is evident that supply chain management’s scope is extensive. It begins with the movement of different raw materials into an organisation, followed by the movement of these materials within the organisation as they are converted into final products. Additionally, supply chain management concerns itself with the delivery of finished goods to the end consumers. The wide scope of supply chain management can distract an organisation from its core mandate. As such, firms opt to concentrate on their core competencies and rely on partners to oversee the majority of supply chain functions. This reliance on partners is facilitated by modern technology which has connected suppliers and customers in new and effective ways (Longenecker et al.,
A supply chain may be characterized as a coordinated procedure wherein various different business elements (i.e., suppliers, makers, wholesalers, and retailers) cooperate with an end goal to: (1) gain raw materials, (2) change over these raw materials into indicated complete items, and (3) convey these last items to retailers. This chain is generally portrayed by a forward stream of materials and a retrogressive stream of data. For a considerable length of time, scientists and professionals have basically researched the different procedures of the supply chain separately. As of late, in any case, there has been expanding consideration put on the execution, configuration, and examination of the supply chain in general. From a reasonable outlook,